Core Viewpoint - The number of family offices in Singapore is expected to grow significantly, driven by regulatory changes and the influx of wealth from high-net-worth individuals, particularly from the UK due to tax reforms [2][6]. Group 1: Family Office Growth - In 2024, Singapore approved 600 family office applications, doubling the number from 2023, with an expected total of 2,000 family offices by the end of the year, marking a 43% increase [3][4]. - The growth trend is anticipated to continue, with an additional 600 to 700 family offices expected to be established in the coming years, supported by tax incentives set to expire in 2029 [2][4]. Group 2: Regulatory Environment - Singapore's regulatory framework is tightening, with stricter anti-corruption reviews and more rigorous tax exemption standards, yet this has not deterred the establishment of family offices, as the focus shifts to quality over quantity [2][4]. - The potential expansion of Singapore's tax exemption investment list could further bolster family offices by 2026, despite recent regulatory measures aimed at enhancing compliance and transparency [4]. Group 3: Wealth Inflow from the UK - The UK is set to lose wealth as tax exemptions for non-citizens are being revoked, with an estimated 10,800 millionaires leaving the UK in 2024, representing a 37% increase since 2014 [6]. - In contrast, the number of millionaires residing in Singapore has surged by 62%, indicating a significant shift in wealth towards Singapore as a favorable destination [6]. Group 4: Benefits for Financial Institutions - DBS Group is well-positioned to benefit from the new regulations and the wealth transfer, as it services over one-third of Singapore's single-family offices [8]. - The launch of DBS's Multi-Family Office Foundry aims to attract clients seeking alternative wealth management solutions, potentially increasing the bank's client base [8]. Group 5: Sustainable Investment and Philanthropy - Singapore is expected to enhance its image as a hub for sustainable investments, with family offices required to allocate a portion of their assets to local climate-related initiatives while still qualifying for tax benefits [10]. - New regulations mandating family offices to employ non-family members may stimulate local employment and reinforce Singapore's position as a global leader in philanthropy [10].